New licences for financial market services

Fees

Applicants must pay a fee when they apply for a new licence for financial market services or apply to vary an existing licence. The relevant fees are set by the Ministry of Business, Innovation and Employment and outlined in the Financial Markets Conduct (Fees) Regulations 2014.

The application fee for a new licence (or to vary an existing licence to add a new type of financial market service) will depend on the type of licence applied for. Reduced fees will apply where you apply for more than one type of licence within a six month period - see below.

Type of licence

Application fee (including GST)

Number of hours after which additional fee may be charged

Manager of registered scheme

$3,565

25 hours

Discretionary Investment Management Service (DIMS) provider

$2,139

15 hours

Independent trustee of a restricted scheme

$2,139

15 hours

Derivatives issuer

$10,695

70 hours

Crowd funding service

$6,238.75

40 hours

Peer-to-peer lending service

$6,238.75

40 hours

We may also charge an additional fee (based on hourly rates) where our assessment of an application exceeds the relevant number of hours for that type of licence as set out in the table above. The Regulations set out charging rates of $200 plus GST per hour for time spent by Financial Markets Authority board members and $155 plus GST per hour for time spent by staff. If an additional fee is to be charged for your application we will let you know the reasons for this.

The fee for an application to vary an existing licence (other than to vary a licence to add a new type of financial market service) is $115.00 (inclusive of GST). The FMA will charge a fee for the time spent assessing a variation application, based on the hourly rates set out above.

See the appropriate application form for details of how to pay the relevant application fee. Where a fee (calculated with reference to the above hourly rates) applies, we will prepare an invoice once our assessment is completed. Please note that we will not issue a new or varied licence until such fee is paid in full.

Licence fees are not refundable if a new licence or variation application is rejected.

Reduced fees for multiple licence applications

A reduced fee will apply to any subsequent licence application by a person for an additional type of licence (or to vary an existing licence to add a new type of financial market service) where there are lower costs for us because the information in that subsequent application is being, or has within the last six months, assessed by us as part of another licence application by the same person.

A reduced fee (50% of the relevant application fee) will apply at the time of each subsequent application (other than in relation to a licence for a derivatives issuer). If a subsequent licence application or variation relates to a licence for a derivatives issuer, a reduced fee of $9,093.30 (i.e. 85% of the usual application fee for that particular licence) will apply to that particular application.

Levies

If licensed, the applicant will also need to pay an annual levy, which recovers the on-going costs of the regime.

Auditors

Auditors will need to pay the following levies, fees and charges. Fees and charges are set by the Ministry of Business, Innovation and Employment (MBIE) and prescribed in the Auditor Regulations 2012 and Financial Markets Conduct (Changes to Financial Markets Authority Fees) Regulations 2014.

In addition, New Zealand based auditors may need to pay fees or charges to their accredited body in accordance with the accredited body's rules.

Application fees

New Zealand auditors and audit firms

For New Zealand auditors and audit firms, a registration application fee of $350 will be payable to the Registrar of Companies. Accredited bodies may also charge application fees to cover their time and costs.

Overseas auditors and audit firms

The fees in New Zealand dollars are as follows:

Application fee $115

Registration fee (which is passed on to the Registrar) $350

You must pay these fees when submitting your application for a standard licence (auditors) or registration (audit firms). Payment details can be found on the relevant application form. Firms may pay the fees for a number of individuals' licence applications together.

You will also need to pay an assessment fee. The assessment fee is based on time spent on assessing your application at the rates prescribed by Regulations as follows:

$230 per hour for members

$178.25 per hour for staff

FMA will invoice you for your assessment fee. We may also recover any costs of external advice or assistance obtained.

Ongoing costs

An annual confirmation fee of $110 will be required for each New Zealand or overseas licence or registration that is confirmed. This covers maintenance of the Auditors Register. Licensed auditors and registered audit firms are also subject to annual FMA Levies of $2,000.

Quality review fee

Registered audit firms, and New Zealand based licensed auditors who are not a partner or employee of a registered audit firm, will be subject to a quality review at least once every four years.

Fees and charges for this review are based on a prescribed rate for FMA members' and staff time as set out below. FMA may recover costs incurred, such as fees for outsourcing and any other external advice.

Brokers and custodians

Financial advisers

Fees

To become an Authorised Financial Adviser (AFA) or Qualifying Financial Entity (QFE) you need to apply on the Financial Service Providers Register. Fees are payable, and will be collected as part of the application process. All fees are quoted in NZ dollars and are inclusive of GST).

AFA fees

(NZ $ inclusive GST)

Application for authorisation

Applicationfee: $ 1,144.89

Renewal of authorisation

Renewal fee: $ 572.44

Variation to terms and conditions or scope of an adviser’s authorisation: (Effective from 1 December 2014)

Fee: $115.00 plus $178.25 for every hour, or part-hour pro rata, of work carried out by a member or employee of the FMA in considering the application.

QFE fees

(NZ $ inclusive GST)

Application for a grant of QFE status

Application fee: $4,886.22

Renewal of a grant of QFE status

Renewal fee: $4,600.00

Variation to terms and conditions a grant of QFE status: (Effective from 1 December 2014)

Fee: $115.00 plus $178.25 for every hour, or part-hour pro rata, of work carried out by a member or employee of the FMA in considering the application.

Financial service providers

Levies

The FMA receives funding from the Crown and a proportion of these costs are then recouped from industry by way of levies.

The Financial Markets Authority (Levies) Regulations 2012 (the Regulations) came into force on 1 August 2012 and set out the levies payable by the various financial markets participants. These levies are set by the Ministry of Business, Innovation, and Employment.

Classes

A financial markets participant falls within one or more 'classes' as set out in the Regulations, depending on what financial services they provide under the Financial Service Providers (Registration and Dispute Resolution) Act 2008 (the FSP Act).

A levy must be paid for each and every class which that they fall within. Levies become payable on the relevant leviable event as described in column 3 of Schedule 2 in the Regulations.

Superannuation Schemes (Fees) Regulations 1992

For an application for approval of a transfer under section 9BAA of the Act, for each half-hour spent by FMA considering the application.

$102.22

2.

For lodging an amendment to a trust deed under section 12 (2) of the Act.

$51.11

3.

For filing an annual report under section 14 (3) of the Act.

$102.22 if the net assets* of the scheme are less than $3,000,000 and no actuarial report is required to be filed under section 15(3) of the Act;

$357.78 if the net assets of the scheme are greater than $3,000,000 and no actuarial report is required to be filed under section 15(3) of the Act;

$511.11 if the net assets of the scheme are less than $3,000,000 and an actuarial report is required to be filed under section 15(3) of the Act;

$766.67 if the net assets of the scheme are greater than $3,000,000 and an actuarial report is required to be filed under section 15(3) of the Act

4.

On application under section 19 (2) of the Act to cancel registration.

$255.55

5.

For filing under section 21(1)(d)(i) of the Act the final accounts of a scheme that is wound up.

$255.55

6.

For requesting consent to the reversion of assets to an employer for each half hour spent by FMA considering the application.

$102.22

* Net assets means the market value of the assets of the scheme, net of borrowings, at the close of the financial year to which the annual report refers. It includes - where the assets of the scheme include policies or contracts of life insurance and annuities on the lives of scheme members and beneficiaries - the aggregate of the amounts assessed by the insurer as the current value of those policies or contracts at the close of the financial year to which the annual report refers. The term policies or contracts of life insurance and annuities excludes any policy or contract which provides only for a lump sum payment on death or disablement or both.

Fees payable for miscellaneous matters

Clause No.

Fee Description

Fee Amount (incl gst)

1.

On application to classify a superannuation scheme as a qualifying superannuation scheme under section EY 11 of the Income Tax Act 2007, for each half-hour spent by the FMA considering the application if the scheme is not required to file an actuarial report under section15(3) of the Act

Levies

Supervisors

Fees

Applicants must pay a fee when they either apply for a new licence or apply to vary an existing licence. The licence fee is set out in the Financial Markets Authority (Fees) Regulations 2011.

The fee for a new application is $8,021.25 (inclusive of GST) in accordance with the Financial Markets Authority (Fees) Regulations 2011.

We may also charge an additional fee (calculated based on hourly rates) where our assessment of an application exceeds 52 hours. The regulations set out charging rates of $200 plus GST per hour for time spent by Financial Markets Authority board members and $155 plus GST per hour for time spent by staff.

If an additional fee is to be charged in respect of your application for a new licence we will let you know the reasons for this. The inital fee for an application to vary an existing licence is $115 (inclusive of GST). The FMA will also charge a fee for the time spent assessing a variation application, based on the hourly rates set out above.

See the application form for details of how to pay the relevant application fee. Where a fee (calculated with reference to the above hourly rates) applies, we will prepare an invoice once our assessment is completed. Please note that we will not issue a new or varied licence until such fee is paid in full.

Licence fees are not refundable if a new licence or variation application is rejected.

All of the above fees are set by the Ministry of Business, Innovation and Employment and are outlined in the Financial Markets Authority (Fees) Regulations 2011.

Levies

If licensed, the applicant will also need to pay an annual levy, which recovers the on-going costs of the regime.